SOUTH AFRICA MARKET REVIEW
- South African markets closed in the red on Friday, led by losses in banking and precious metal sector stocks.
- Lenders, Capitec Bank Holdings (JO:CPIJ), FirstRand (JO:FSRJ) and Investec (JO:INLJ) declined 2.0%, 1.1% and 0.9%, respectively.
- Platinum miners, Northam Platinum (JO:NHMJ) and Impala Platinum (JO:IMPJ) fell 1.2% and 1.1%, respectively.
- Pharmaceutical companies, Aspen Pharmacare (JO:APNJ) and Life Healthcare Group (JO:LHCJ) eased 1.2% and 0.6%, respectively.
- On the flipside, retailers, SPAR Group (JO:SPPJ), Cie Financiere Richemont S.A. (JO:CFRJ), Clicks Group (JO:CLSJ) and Mr Price Group (JO:MRPJ) advanced 2.9%, 1.3%, 1.1% and 0.8%, respectively.
- Property developers, Growthpoint Properties (JO:GRTJ), Shaftesbury Capital and Emira Property Fund (JO:EMIJ) gained 2.1%, 1.9% and 0.9%, respectively.
- Food companies, Tiger Brands (JO:TBSJ) and AVI (JO:AVIJ) rose 1.1% and 0.9%, respectively.
- The JSE All Share index declined 0.2% to close at 72,382.89.
UK MARKET REVIEW
- The UK market finished firmer on Friday, boosted by robust domestic economic data.
- Retailers, JD Sports Fashion (LON:JD), Ocado Group (LON:OCDO) and J Sainsbury (OTC:JSAIY) advanced 4.8%, 3.3% and 1.0%, respectively.
- Water utilities company, Severn Trent (LON:SVT) gained 4.4%, after the company said it would raise GBP1.00bn ($1.20bn) in new equity to support plans for infrastructure investment to reduce water leakage and cut sewage outflows.
- Chemicals company, Croda International (LON:CRDA) increased 4.3%.
- Real estate companies, British Land Company (LON:BLND), Land Securities Group (LON:LAND), Barratt Developments (LON:BDEV) and Berkeley Group Holdings (LON:BKGH) rose 2.7%, 2.6%, 1.9% and 1.3%, respectively.
- Miners, Glencore (JO:GLNJ) and Antofagasta (LON:ANTO) added 1.9% and 0.8%, respectively.
- On the other hand, energy companies, Shell (LON:RDSa) and BP (LON:BP) declined 2.1% and 1.8%, respectively.
- The FTSE 100 index advanced 0.1% to close at 7,608.08.
US MARKET REVIEW
- US markets ended mostly lower on Friday, as investors assessed inflation data and the prospects of rate hikes by the US Federal Reserve (Fed).
- Cruise Line companies, Carnival Corporation (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NCLH) dropped 5.0% and 2.7%, respectively.
- On the contrary, athletic wear company, Nike (NYSE:NKE) jumped 6.7%, after the company reported higher earnings in 1Q24.
- Pharmaceutical companies, Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) advanced 3.4% and 3.0%, respectively.
- Technology companies, Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) added 1.1% and 0.7%, respectively.
- The S&P 500 index fell 0.3% to settle at 4,288.05, while the DJIA index declined 0.5% to close at 33,507.50.
- The NASDAQ index climbed 0.1% to end the trading session at 13,219.32.
ASIA MARKET REVIEW
- Asian markets are trading higher this morning, after Chinese manufacturing activity expanded for the first time in six months in September.
- In Japan, automobile company, Mitsubishi Motors (TYO:7211) Corporation has advanced 3.6%.
- On the flipside, pharmaceutical company, Sumitomo Pharma (TYO:4506) has declined 1.0%.
- Hong Kong and South Korean markets are closed today on account of a public holiday.
- On Friday, the Hang Seng index advanced 2.5% to close at 17,809.66.
- On Thursday, Kospi index gained 0.1% to close at 2,465.07.
- Today, the Nikkei 225 index is trading 1.4% higher at 32,305.66.
COMMODITIES
- At 05:30 SAST today, Brent prices fell 2.9% to trade at $92.52/bl.
- On Friday, Brent prices fell 0.1% to settle at $95.31/bl, amid ongoing macroeconomic concerns. Meanwhile, Baker Hughes reported that the oil rigs count fell by 5 to 502 in the week ended 29 September 2023.
- At 05:30 SAST today, gold prices declined 0.2% to trade at $1,844.03/oz. On Friday, gold declined 0.9% to close at $1,848.31/oz, as a stronger dollar dented demand for the safe haven yellow metal.
- On Friday, copper rose 1.5% to close at $8,230.35/mt. Aluminium closed 1.9% higher at $2,319.15/mt.
CURRENCIES
- On Friday, the South African rand strengthened against the US dollar. In the US, the Chicago PMI declined more than expected in September. Moreover, the Michigan consumer sentiment index fell for a second consecutive month in September.
- The yield on benchmark government bonds fell on Friday. The yield on 2030 bond declined to 10.81% while that for the longer-dated 2040 issue fell to 12.88%.
- At 05:30 SAST, the US dollar is trading 0.1% higher against the South African rand at R18.9408, while the euro is trading 0.1% higher at R20.0165. At 05:30 SAST, the British pound has marginally gained against the South African rand to trade at R23.0862.
- On Friday, the euro mostly advanced against most of the major currencies. In Germany, retail sales unexpectedly declined in August amid weaker demand for both food and non-food items. Meanwhile, the regions unemployment rate remained unchanged in September.
- At 05:30 SAST, the euro slipped 0.3% against the US dollar to trade at $1.0538, while it has gained 0.1% against the British pound to trade at GBP0.8671.
ECONOMIC UPDATES
- In South Africa, trade surplus narrowed to R13.28bn in August, compared to a revised surplus of R15.44bn recorded in the previous month.
- In the UK, current account deficit unexpectedly widened to GBP25.89bn in 2Q23, compared to a revised deficit of GBP15.16bn recorded in the previous month.
- In the UK, gross domestic product (GDP) rose 0.2% on a QoQ basis in 2Q23, in line with market expectations. GDP had advanced 0.1% in the previous quarter.
- In Germany, retail sales unexpectedly dropped 1.2% on a MoM basis in August, compared to a drop of 0.8% recorded in the previous month.
- In Germany, the unemployment rate remained unchanged at 5.7%, in line with market expectations.
- In the eurozone, the preliminary consumer price index (CPI) advanced 0.3% on a MoM basis in September. The CPI had advanced 0.5% in the prior month.
- In the US, goods trade deficit narrowed to $84.30 bn in August, compared to a deficit of $90.00 bn recorded in the previous month.
- In the US, the Chicago Purchasing Manager’s Index (PMI) dropped to a level of 44.10 in September, more than market expectations for a drop to a level of 47.60 and compared to a level of 48.70 recorded in the previous month.
- In the US, the Michigan consumer sentiment index fell to a level of 68.10 in September, compared to a level of 69.50 recorded in the previous month. Market were expecting the index to rise to a level of 67.70.
- In Canada, GDP recorded a flat reading on a MoM basis in July, compared to market expectations for a rise of 0.1%. GDP had declined 0.2% in the previous month.
- In Japan, housing starts dropped 9.4% on a YoY basis in August, more than market expectations for a drop of 8.9%. Housing starts had recorded a drop of 6.7% in the previous month.
- In Japan, the Jibun Bank manufacturing PMI fell to a level of 48.50 in September, compared to a level of 49.60 recorded in the previous month.
- In China, the NBS manufacturing PMI rose more than expected to a level of 50.20 in September, compared to a level of 49.70 recorded in the prior month.
- In China, the Caixin manufacturing PMI unexpectedly declined to a level of 50.60 in September, compared to a level of 51.00 recorded in the previous month.
- In China, the Caixin services PMI fell to a level of 50.20 in September, compared to a level of 51.80 recorded in the previous month.
- In Australia, the S&P Global manufacturing PMI dropped to a level of 48.70 in September, compared to a level of 49.60 recorded in the previous month.
CORPORATE UPDATES
SOUTH AFRICA
- Ascendis Health Limited (JO:ASCJ): The health and wellness company, in its FY23 results, indicated that its revenue from continuing operations fell to R1.54bn from R1.56bn posted in the previous year. Its basic and diluted loss per share stood at 47.20c.
- Delta Property Fund Limited (JO:DLTJ): The real estate investment trust company announced that it has entered into sale agreement with Coffee Shop At Tyres Close Corporation to dispose of its property situated at Corner Markgraaff & Zastron Streets, Bloemfontein, including immovable assets thereon known as "Sediba & Fountain" building, for a cash consideration of R19.10mn excluding VAT. Also, the company announced another sale agreement with Dimatone Proprietary Limited, to dispose of its property situated at Corner Markgraaff & Zastron Streets, Bloemfontein, including immovable assets thereon known as the "VLU" building, for a cash consideration of R7.00mn.
- Oil prices rise on tight US supply and strong Chinese demand: Oil prices edged higher and were headed for a gain of 2% for the week, driven by tight US supply and expectations of strong fuel demand in China during the Golden Week holiday.